Despite facing challenges with the Cybertruck and trademark issues, Tesla shares climbed 4.4% to $288.44 on Thursday. This increase was driven by broader market momentum following a landmark U.S.-U.K. trade deal that sparked investor optimism.
Market Performance
The S&P 500 surged 1.3% while the Russell 2000 jumped 2.3%, as easing trade tensions and hints at sweeping tax cuts lifted sentiment across risk assets. This positive market sentiment helped to boost Tesla’s shares, despite the company’s recent challenges.
Challenges Facing Tesla
Despite Thursday’s rally, Tesla has faced mixed headlines throughout the week. The company canceled its Cybertruck range extender, an optional $16,000 battery pack that would have boosted range to over 500 miles, amid sluggish Cybertruck sales. Reports suggest that over 10,000 units remain unsold. In response, Tesla recently launched a cheaper rear-wheel-drive variant and offered select buyers a free trial of its Full Self-Driving software to reignite interest.
Trademark Issues
Further complicating matters, the U.S. Patent Office rejected Tesla’s trademark application for the term “Robotaxi,” citing it as “merely descriptive.” This comes as Tesla gears up to launch its ride-hailing service in Austin next month.
Federal EV Tax Credit Program
Looming political uncertainty threatens the federal EV tax credit program, which Tesla heavily benefits from. This uncertainty could have a significant impact on the company’s future sales and revenue.
Investing in Tesla
For those interested in investing in Tesla, there are several options available. Besides going to a brokerage platform to purchase a share of stock, you can also gain access to shares by buying an exchange-traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
ETFs and Sector Tracking
For example, in Tesla’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
Stock Performance
According to data, TSLA has a 52-week high of $488.54 and a 52-week low of $157.40. Investors should carefully consider their options and do their research before making any investment decisions.